You elect a leftist in Brazil, China comes calling, Biden is asleep, and a new love affair is born. What could go wrong? Yes, to paraphrase that song from the 1980’s, Lula is turning Chinese I really think so. Well, here is the story:
The deal, announced Wednesday, will enable China and Brazil to carry out trade and financial transactions directly, exchanging yuan for reais — or vice versa — rather than first converting their currencies to the U.S. dollar.
The Brazilian Trade and Investment Promotion Agency (ApexBrasil) said the new arrangement is expected to “reduce costs” and “promote even greater bilateral trade and facilitate investment.” China is Brazil’s largest trading partner, accounting for more than a fifth of all imports, followed by the United States, according to the latest figures. China is also Brazil’s largest export market, accounting for more than a third of all exports.